Money market in India
- Also known as the Paisa Ka Dukan in India
- Structure-- consists of the
- unorganised sector: moneylenders, indigenous bankers, and unregulated Non-Bank Financial Intermediaries (e.g. Finance companies, Chit funds
- organised sector: Reserve Bank of India, private banks, public sector banks, development banks and other non-banking financial companies (NBFCs) such as Life Insurance Corporation of India (LIC), the International Finance Corporation, IDBI
1. Call/Notice/Term money market
2. Repurchase Agreement (Repo & Reverse Repo) market
3. Treasury bill market
4. Commercial Bill market
5. Commercial paper market
6. Certificate of Deposit market
7. Money Market Mutual Fund.
8. Cash Management Bill (CMB).
Call money market
The call money market deals in short term finance repayable on demand, with a maturity period varying from one day to 14 days
The interest rate paid on call money loans, known as the call rate
There are now two call rates in India: the Inter bank call rate and the lending rate of DFHI
Treasury bill market
Treasury bills are instrument of short-term borrowing by the Government of India
it is classified on the maturity period like 91-days TBs, 182-days TBs, 364-days TBs and also 10-days
The bills are of two kinds- Adhoc and regular. The adhoc bills are issued for investment by the state governments, semi government departments and foreign central banks for temporary investment. They are not sold to banks and general public. The treasury bills sold to the public and banks are called regular treasury bills.
Money market mutual funds Money market mutual funds invest money in specifically, high-quality and very short maturity-based money market instruments. The RBI has approved the establishment of very few such funds in India
Certificate of deposit-it is the certificate issued by bank/financial institute to other banks / financial institute , who give funds on short term basis
Capital markets of India
Securities and Exchange Board of India ( SEBI )
established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI Act, 1992
SEBI Headquarter, Mumbai
FUNCTION-.to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected there with or incidental there to
Mutual funds of India
Mutual Funds in India are being distributed by various channels , like : Corporate Distributors, Individual Distributors , Post Offices and Banks.
Indian stock exchange
the largest of which are the NSE and BSE
Now total 23m ( 2 are national and 21 are regional )
Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers
in 1875, was formally organized as the Bombay Stock Exchange (BSE).
Bombay Stock Exchange
Established in 1875, the BSE (formerly known as Bombay Stock Exchange Ltd.)
Asia’s first stock exchange.
It claims to be the world's fastest stock exchange, with a median trade speed of 6 microseconds.
The BSE is the world's 10th largest stock exchange
founded by Premchand Roychand(businessmen in 19th-century Bombay) .Also known as the Cotton King, the Bullion King or just the Big Bull. also the founder of the Native Share and Stock Brokers Association, now known as the BSE
National Stock Exchange of India